Over the years, online lending has become immensely popular. Despite banks being the number one source for most lenders today, the online lending industry has been growing tremendously.

A 2021 Finder survey showed that 32.2% of Americans with personal loans borrowed from online lenders. This stat means there is a massive opportunity to make money in that space. However, you need to provide quality service to get your share of the massive market. It’s no longer business as usual, as potential borrowers now take their time to compare the different loan companies available on platforms like Smalan-Norge.com before making a choice. Ultimately, your performance will determine your reviews, and your reviews will determine whether people want to do business with you.

If you own an online consumer lending platform, there’s no better time to take scale than now. However, attracting people to your platform requires it to be transparent, secured, and trustworthy. This precaution is because consumers will only take loans where they feel safe. Before taking out a loan, they want to be able to do the calculations and see clear sums and numbers. This stage is where online calculators come in.

These online calculators give the consumer an idea of what they’re getting into, which is vital for trust building. You might have heard how important online calculators are, or maybe you realize now. You’re probably scared because you feel it’s an arduous task that might require spending hours or hiring a web programmer. Luckily for you, it’s a straightforward process. In the next paragraphs, you will learn how to build a calculator for your online consumer lending platform.

What An Online Calculator Does

An online calculator does the primary job of summing up figures on a website. For online lending platforms, loan calculators are usually added to a site to help visitors fully understand vital aspects of any credit facility they plan to take.

Generally, an individual applies to take a loan from a lending portal such as Thorn Finans or any other institution, online interactive loan calculators require the applicant to input the following:

  • Loan amount: The amount the applicant wants to borrow.
  • Loan term: How long it’ll take to pay back the loan.
  • Interest rate: This is the amount the online lender charges for the loan. The interest rate is expressed as a percentage of the total loan fee.

With these three details, the online calculator will display the following numbers.

  • Total interest paid: This is the accrued interest on the facility.
  • Total cash paid: This is the total amount the borrower will pay at maturity.
  • Monthly payment: The amount to be paid each month on the facility.

Why Add an Online Calculator to Your Platform?

Are you still unsure as to why your website needs this feature? Let us quickly remind you that a Finder survey has established that interactive features like online calculators are more effective at grabbing consumers’ attention than static content.

Many online lending companies like Ferratum offer this feature on their websites, and customers have claimed it makes the whole experience easier, faster, and convenient. You can read more about Ferratum here.

Here are more benefits your website can derive from adding this feature.

1. Lead Generation

Online calculators save you and your potential clients the stress of lengthy calls or email explanations. They can easily calculate and see the results they want for themselves.

Also, when a random visitor uses your platform’s loan calculator, the results from the calculations can be sent to their email. This system helps to generate new email leads.

2. Engage and Educate Your Audience

In this era, where several platforms offer the same services as you, attracting customers is not enough; every online financial institution must find a way to retain them.

This goal can be achieved using many methods, from engaging web content to quizzes and online calculators. Adding the tool can help complete the full consumer journey, from attracting and retaining them to building lasting relationships with them.

3. Improves Traffic and Better SEO

The longer people spend on your platform, the more likely it will rank higher on search engines. Integrating the tool into your lending platform will attract and keep people to your site. Because after they must have seen the loan deals you offer, they’ll use the calculator to confirm and understand things better.

It can also attract random internet users who might not need a loan but want to make calculations, maybe for a friend. This activity counts as traffic to your platform and will help you generate search engine rankings.

However, despite the potency of online calculators, avoid putting them on blank pages. You can integrate them into pages where you explain your platform’s discounts and incentives. Or in pages where you list the advantages of using your platforms. This step is more effective in retaining their attention and allows you to include vital keywords needed for SEO.

How to Build a Calculator for Your Online Consumer Lending Platform

Now we’ve seen the importance of an online calculator; it’s time to look into how to build one. Luckily, modern technological advancements have made it easy, and dozens of online calculator builders. Here are some of the best on the ground:

  • uCalc
  • Outgrow
  • CALCIC
  • Calculoid
  • ConvertCalculator
  • JSCalc

The Bottom Line

Integrating a calculator into your online lending platform will help attract, retain, and build a strong relationship with potential clients.

Aside from improving your platform’s ranking on social media, it’ll save you and your client the stress of going through tiny details.

Potential clients can easily check out the deals they want and calculate the total interest and monthly payments. We’ve also shared some incredible online calculator builders you can try today to make the process easier.